Our Reuven Shechter may like his new iPad, but Australian consumer watchdog Competition and Consumer Commission (ACCC) cried foul yesterday over Apple’s claim of 4G compatibility. It turns out that the iPad isn’t compatible with Australia’s 4G network at all. From the Australian Broadcasting Company:
Lawyers for the ACCC accused Apple of breaching consumer law by promoting the device as being able to connect to high-speed 4G mobile networks using a sim card.
The Federal Court heard Apple ignored warnings from the ACCC and was told the day before the iPad’s launch that it was misleading consumers.
Today Apple’s lawyers argued it was never specified the iPad could connect to Telstra’s network, but told the court the device is compatible with other networks that by international standards are deemed 4G.
According to online reports, Australian merchants have taken up Apple’s slack, using signage to warn consumers that the iPad sold as 4G compatible would not work on the country’s 4G. Telstra took the extra step of including a sticker to that effect on iPad packaging, and, of course, the fine print on the box includes the line “4G LTE is supported only on AT&T and Verizon networks in the US; and on Bell, Rogers and Telus networks in Canada.” Apple, the ACCC argued, has a responsibility not to market the iPad to Australians as 4G compatible, which is a problem when that’s a major selling point for the tablet.
By midday Wednesday (Australia time), with the prospect of millions in fines from the Australian government and mountains of bad press internationally, Apple relented. The company agrees to publish a clarification in advertisements and at point of sale, and it will email a refund offer to consumers who have already purchased the newest iPad. Apple and ACCC are expected to return to court today to finalize the agreement.
Not 4G compatible in Australia? Get it together, Apple! My new HTC phone is 4G compatible, and I got that for nothing.